Textron Inc (TXT) stock analysis
Textron Inc (TXT) clears 5 of this site's 8 mechanical value filters, 7 of 8 Buffett-style checks and 4 of 5 Lynch-style checks. At $78.04 it trades 23.0% below this site's neutral DCF value (a margin of safety of +23.0%). Its earnings quality rates Strong and it returns +5.7% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does Textron do?
Textron makes Cessna and Beechcraft aircraft, Bell helicopters, and industrial products such as golf carts and tools.
Brands and businesses it owns
- Cessna
- Beechcraft
- Bell
- E-Z-GO
- Jacobsen
What stands out about Textron?
- The share price implies 1.6% yearly growth. At $78.04, TXT's free cash flow of $5.93 per share would have to grow 1.6% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for less growth than the baseline. Change the assumptions.
- Misses 1 of the 8 value filters. It fails Market Cap > $25B ($13.3B); the other 5 pass and 2 were not evaluated. See every filter.
- Close to its 52-week low. At $78.04, TXT is 6.9% above its low of $73.03 and 22.6% below its high of $100.77. See the range.
- Strongest against peers: P/E ratio. At 14.2× (peer median 27.1×) it ranks 1st of 12 among aerospace & defense stocks this site tracks. See the ranking.
- Weakest against peers: dividend yield. At 0.14% (peer median 1.73%) it ranks 11th of 11 among aerospace & defense stocks this site tracks. See the ranking.
How has Textron's share price moved?
The interactive price chart needs JavaScript.
Is Textron undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) +23.0%
- P/E vs. its own history 14.2x · at/below its cheapest point Real range: 17.0x–23.2x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 3.71/5 21 analysts this month: 4 strong buy, 7 buy, 10 hold, 0 sell, 0 strong sell (Finnhub). Up from 3.65 last month.
- Earnings quality (is the profit real?) Strong · all 5 checks clean accruals −2.2% of assets · 135% of profit arrived as cash · stock comp 0.5% of revenue · share count −5.5% a year. From the latest 10-K (year to Jan 2026) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +5.7% net Latest fiscal year (2026): dividends 0.1% + buybacks 6.2% − stock comp 0.6%, as a share of today's market cap. Over 14 years its split-adjusted share count fell 41%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) n/a (no current-assets line on its balance sheet)
- PEG (growth at a reasonable price) 1.37 · Above fair P/E 14.2× ÷ 10.3% a year of growth behind it. 146th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 3 of 4 · misses capital-light (n/a) Capital-light growth: cannot be measured (no current-assets line on its balance sheet); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): cleared. See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 0 flags
- Standing vs. sector peers 3 of 7 measures above the median Compared with the 11 other aerospace & defense stocks this site tracks: 3 in the top third, 4 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does Textron compare with its peers?
3 of 7 measures sit above the median of the 11 other aerospace & defense stocks tracked here, 3 in the top third and 4 in the bottom third.
- P/E ratiolower is cheaper · peer median 27.1× 14.2× ✓1st of 12
- Free-cash-flow yieldhigher is cheaper · peer median 4.9% 7.6% ✓2nd of 12
- Return on equityhigher is better · peer median 22% 12% ✕10th of 12
- Net marginhigher is better · peer median 8.2% 6.1% ✕10th of 12
- Revenue growthhigher is better, year on year · peer median 12.8% 8.8% ✕9th of 12
- Debt / equitylower is safer · peer median 0.66 0.47 ✓3rd of 12
- Dividend yieldamong dividend payers · peer median 1.73% 0.14% ✕11th of 11
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and TXT clears it. In its favor: TXT is currently earning a strong return on shareholders' equity, and has kept that profitability up over five years, not just this year, carries a conservative amount of debt relative to equity, has grown earnings per share at a solid clip over five years, earns many times its interest expense, so debt service isn't a worry, is trading below what a conservative discounted-cash-flow estimate says it's worth - his own "price is what you pay, value is what you get" test, not a fixed multiple ceiling, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: TXT runs thinner pretax margins than he'd like to see.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✓
- Debt/Equity < 0.5 ✓
- Pretax margin > 15% ✕
- EPS growth (5yr) > 7% ✓
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✓
- Price vs. owner earnings < 25x ✓
- Bonus: returning capital via buybacks FY2026
Lynch looked for growth stories that weren't overpriced for that growth, and TXT falls short of his bar. In its favor: TXT is growing earnings at the steady 10-20% pace of a proper Stalwart, isn't over-leveraged for a company of its type, isn't asking investors to overpay for that growth, and is backing its growth up with real free cash flow. Where it comes up short: TXT fails his signature PEG test, he'd call this pricey for the growth on offer.
- PEG < 1 ✕
- EPS growth 10%-20% ✓
- Debt/Equity < 0.6 ✓
- P/E < 27 ✓
- Price/FCF < 30 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does Textron pass?
- Market Cap > $25B $13.3B
- Trailing P/E < 25 14.16
- PEG Ratio < 1.5 1.37
- Price/Book < 8 1.65
- Price/Sales < 7 0.87
- EPS Growth YoY > -5% +4.8%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is Textron's margin of safety?
History tracking starts this week - check back in a future week to see how this has moved.
Where is Textron in its 52-week range?
What is the short interest in Textron?
8,160,813 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with Textron? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +54%
- Short interest under 5% of float 4.8%
- Passes most of the 6 fundamental filters 5/6 passed
- Price run-up backed by value, not just momentum +7% off 52wk low
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have Textron shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from TXT's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do Textron's 10-year financials show?
From TXT's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about Textron
What kind of company is Textron?
Textron makes Cessna and Beechcraft aircraft, Bell helicopters, and industrial products such as golf carts and tools. Brands and businesses it owns include Cessna, Beechcraft, Bell, E-Z-GO and Jacobsen. This site groups it with Aerospace & Defense stocks.
Is Textron trading above or below its DCF value?
At $78.04, TXT trades 23.0% below this site's neutral DCF value of $101.34 per share, a margin of safety of +23.0%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does Textron pass?
TXT passes 5 of 8. It passes Trailing P/E < 25 (14.16), PEG Ratio < 1.5 (1.37), Price/Book < 8 (1.65), Price/Sales < 7 (0.87) and EPS Growth YoY > -5% (+4.8%). It misses Market Cap > $25B ($13.3B). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
Where is Textron trading compared with its 52-week range?
At $78.04, TXT trades 6.9% above its 52-week low of $73.03 and 22.6% below its 52-week high of $100.77. The Near 52-Week Low list tracks stocks in that position.
Is Textron's P/E ratio high or low compared with its own history?
TXT trades at 14.2× trailing earnings. At the end of each of its last 5 fiscal years its P/E was between 17.0× and 23.2× (average 18.5×), so today's multiple is at or below the lowest of those years. Each year's P/E pairs net income per diluted share from the 10-K with the closing price at that fiscal year-end.
When does Textron report earnings next?
Textron's next earnings report is expected on October 29, 2026 before the market opens, with analysts expecting earnings of $1.46 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 4 times, by an average of +5.0%.
Where do these numbers come from?
- Financial statements: Textron's 10-K annual report for the year ended Jan 3, 2026, filed Feb 11, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this Textron Inc analysis
This page shows every value-investing check the site runs on Textron Inc (TXT) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.